OWNER OCCUPIED HARD MONEY
There are several variants for a hard money loan and one of them is Owner Occupied Hard Money, which you can obtain with the best conditions thanks to Capella Mortgage.
(RATES AND DOWN PAYMENT DEPEND ON THE TYPE OF DEAL)
20% DOWN PAYMENT USUALLY* (DEPENDS ON THE DEAL)
- Interest rate is usually 12.9% at 80% LTV
- 11.9% for 70% LTV
- 10.9% for 50% LTV
- less for lower than 40% LTV
- 5 year loans Amortizing Payment for Owner Occupants with minimum 5 year balloon
- Minimum loan fee is usually $3595 or 5 points, whichever is greater. It is now illegal for us to give you a discount, or preferential treatment.
- The government says we must treat everyone equal so we cannot give discounts. However, larger loan amounts may receive a lender credit.
We will want to see a few bank statements, W2’s, Tax Return’s, or pay stubs at a minimum. If you are self employed, we will ask for something else, like 12 or 24 months of bank statements.
- Debt to Income Ratio cannot exceed 50% on ANY loan whether investment or owner occupied.
- HOA payments, Taxes, and Insurance must be impounded
- Must have steady employment, or retirement income, or steady income.
- Approximately 2 weeks to close for owner occupants due to Dodd-Frank, but emergency loans are granted an exception. I don’t know any hard money lender in the world that has the process and technology that we do, and that is why not only do we say that we can we close fast, but we actually do it!!!
All borrowers must qualify for hard money loans. There is no such thing as “loans based on a property’s equity” anymore. Per the state of Nevada we must prove your ability to make payments, without using the equity in the property, for every single loan type, including investment properties, and commercial properties.
HOW MUCH DOES IT COST?
We don’t charge additional fees, like processing fee, broker fee, underwriting fee, doc prep fee, but you do have to pay $125 for loan servicing set up fee to the Loan Servicer, and $30 to the investor. Some other lenders charge these fees (broker fee, underwriting fee, processing fee, doc prep fee, etc.) on top of the 5 points, but we don’t and we give you a Loan Estimate, as well as all of the other federally required disclosures.
- For Owner Occupants the fee is:
- Minimum of $3595 for $35k and up
- Minimum of $2995 for $20k to $35k
- Minimum of $1995 for $10k to $20k
- Over $72k, the fee is 5 points.
- Over $1M, the fee can go down to 3.5%, but only for a really, really good deal.
- Equity deals or commercial loans can have rates from 8 to 25% and points from 1 to 20 points.
So, the answer to the question “how much will it cost?” depends on your down payment, your credit worthiness, the property, your exit strategy, your common sense, and your character. We want borrowers who know what they are doing, are skilled in their trade, have honor and plan on paying us back with no games.